Implications Of Flagship Credit V. Indian Harbor

Law360, New York (July 30, 2012, 1:29 PM EDT) -- The Fifth Circuit recently held that coverage for statutory class action claims against a financial institution is not excluded under the definition of “loss” in a contract for liability insurance. Flagship Credit Corp. v. Indian Harbor Ins. Co., No. 11-20408, (5th Cir. June 15, 2012).

Background

In December 2009, plaintiffs initiated a class action in Pennsylvania alleging that Flagship Credit Corporation, which provides automobile financing in Texas, had failed to provide class members with adequate notice of default as required by the Texas Business and Commerce...
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